Coffee with Craig Show – daily CRE news covering the CEE region, Wednesday, April 19, with Winston Norman, Editor and Chief of EuropaProperty.com.
A strong start to the year for the Polish retail market
According to the latest report from Cushman & Wakefield, the Polish retail market got off to a flying start in 2023, with over 100,000 sqm of new retail space coming on stream in the first quarter of the year and a number of new openings expected to deliver a total of 300,000 sqm. The biggest single challenge facing both retail tenants and landlords is high inflation which has resulted in falling sales for some shopping categories.
“At the end of March 2023, there was over 400,000 sqm of retail space under construction and scheduled for opening in 2023-2024. The new retail space supply will be delivered through 32 new projects, six extensions and three redevelopments,” comments Ewelina Staruch, Analyst, Consulting & Research, Cushman & Wakefield.
The first quarter of 2023 witnessed four new brands enter the market. The newcomers were Lush, Master Burger, Mix Markt, and MOL petrol stations. The brands expected to open in Poland in the months ahead include Woolworth, Butlers, Popeyes, and Żabka Drive.
CTP looks to double in size by 2030
CTP is aiming to double the size of its pan-European network of business parks to 20 million sqm of GLA by the end of the decade. CTP is seeing strong demand for its development pipeline in new locations, alongside expansions at its longstanding CTParks, from existing and new tenants across CTP’s CEE markets, which covers the Czech Republic, Slovakia, Romania, Hungary, Poland, Serbia and Bulgaria, and Western EU markets in Germany, Austria and the Netherlands.
Remon Vos, CEO of CTP, said: “CTP has long been a believer in the potential of CEE and there is no doubt that a combination of strong economic fundamentals, emerging global megatrends – such as the rise in nearshoring – and key real estate market dynamics, mean the CEE region will continue to outperform Europe’s more developed markets, driving further demand for logistics and industrial space.”
Regesta takes 36,000 sqm warehouse lease in Pomerania
REGESTA, a logistics services provider, has leased nearly 36,000 sqm in Panattoni Park Tricity East V. Its new facility will enable it to cooperate with the nearby seaport, offer container handling in the Baltic Hub and the BCT, and expand its sea transport services. The tenant was represented during the transaction process by Newmark Polska.
“In a short space of time, Regesta has leased almost 70,000 sqm in two Panattoni centres – one in Gdańsk and the other in Ruda Śląska. These two contracts for large spaces – both of which are of record-breaking size for the tenant – demonstrate how much Panattoni has to offer rapidly growing businesses,” says Marek Dobrzycki, the Managing Director of Panattoni.
Echo-Archicom group merges residential businesses
Echo Investment’s residential business will be integrated into Archicom to create a nationwide developer with bigger growth potential and a wider market presence. The change will also clarify the structure of the Group, where Archicom will be the residential part and Echo Investment will focus on growing the commercial and PRS segments, as well as on creating mixed-use ‘destination’ projects.
“The business of our Group will be divided into two streams: residential and commercial. The ambition and strategic goal for both parties is to be a nationwide champion,” says Nicklas Lindberg, CEO of Echo Investment.
The total value of Echo Investment – Archicom Group’s assets at the end of 2022 amounted to PLN 6.1 billion, comprising PLN 2.3 billion of residential and PLN 3.8 billion of commercial assets.